Economics and National Income - 1160 Words

Answers to End-of-Chapter Questions in Chapter 17 1. An economy is currently in equilibrium. The following figures refer to elements in its national income accounts. | | £ billions | |Consumption (total) |60 | |Investment |5 | |Government expenditure |8 | |Imports |10 | |Exports |7 | (a) What is the current equilibrium level of national income? (b) What is the level of injections? (c) What is the level of withdrawals? (d) Assuming that tax revenues are  £7 billion, how much is the level of saving?†¦show more content†¦4. Construct a table similar to Table 17.2 (on page 477), only this time assume that the mpcd is  ¾. Show that national income will increase by  £640 million. Table 16.1(a) The multiplier round: original table in text ————————————————————— Period (J (Y (Cd (W ( £m) ( £m) ( £m) ( £m) ————————————————————— 1 160 160 80 80 ( 2 – 80 40 40 ( 3 – 40 20 20 ( 4 – 20 10 10 ( 5 – 10 5 5 ( 6 – 5 . . . . . . ————————————————————— 1 ( ( 320 160 160 ————————————————————— Table 16.1(b) The multiplier round: answer to question: mpcd =  ¾ —————————————————————— Period (J (Y (Cd (W ( £m) ( £m) ( £m) ( £m) —————————————————————— 1 160 160 120 40 ( 2 – 120 90 30Show MoreRelatedEconomics - National Income2400 Words   |  10 Pagesï » ¿ECONOMICS TITLE : NATIONAL INCOME TEAM MEMBERS : SARAH CHIN, ARDEN, NURUL NADYRAH FIR DAUS LECTURER : MR.MANO TABLE OF CONTENT 1. INTRODUCTION TO NATIONAL INCOME 3, 4 2. BACKGROUND OF NATIONAL INCOME 5, 6 3. THE MEASUREMENT OF NATIONAL INCOME 7, 8 4. THE PROBLEMS IN MEASURING NATIONAL INCOME 9, 5. PROBLEMS OF COMPARISON OF NATIONAL INCOME BETWEEN 10 COUNTRIES Read MoreManagerial Economics National Income2704 Words   |  11 Pagesmeasurement of nation income Classical and Keynes approaches nATIONAL INCOM E: ----The t otal sum of goods and services produced by t he people of a count ry wit h t he help of capit als and national resources called Nat ional Income (Prof. Alfred Marshall) We can define Nat ional Income as t he collective achievement of a nat ion. In t his way, t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley) Nat ional Income is t he basic concept of economic, which refers tRead MoreAssignment 2: What Is Gross Domestic Product?988 Words   |  4 PagesIn the fourth quarter, real GDP decreased. Exports, imports, and personal consumption expenditures decreased. Additionally, Federal, national defense and nondefense increased through each quarter. (NIPA Tables 1.1.5, 2012) c. What caused these changes? The causes for these changes were because of the recession. This was due to a significant decline in economic activity. Additionally, personal consumption expenditures and private investment are down dramatically and real exports of goods andRead MoreBusiness Gross Domestic Products1520 Words   |  7 Pagescompared with an increase of 0.8 percent in the second. 2. What was GNP for 2009? Q1 14.24 Q2 14.25 Q3 14.36 Q4 14.56 Or The GNP for 2009 was 14,117.2 d. What is the difference between GDP and GNP? Gross National Product (GNP) is often contrasted with Gross Domestic Product (GDP). While GNP measures the output generated by a countrys enterprises (whether physically located domestically or abroad) GDP measures the total output produced within a countrysRead MoreGdp vs. Gnp1201 Words   |  5 Pagesand GNP (Gross National Product) represent the size and strength of the economy. While both concepts are similar, their definition, calculation and applications are different from each other. Comparison chart All attributes   Differences    Similarities    Improve this chart | GDP | GNP | Definition: | An estimated value of the total worth of a country’s production and services, calculated over the course on one year | GDP (+) total capital gains from overseas investment (-) income earned by foreignRead More How is National Income derived? What is the GDP? What information does564 Words   |  3 PagesHow is National Income derived? What is the GDP? What information does it give us about a nation? What is per capita income? If you wanted to know about the economy of a country, which would you consider more important, and why? (25 points) National Income is derived through the overall income earned by a country’s people, including labor and capital investment. Gross domestic product is the sum of gross value added by all resident producers in the economy plus any product taxes and minusRead MoreThe Impact Of Economic Condition Of A Business Organization1433 Words   |  6 Pagesinfluenced by the formation of economy. Economics is the fact that can establish or demolish a business. Changes of economic condition of a business organization are the main following factor. The increase of economic condition is the sign of business success. On the other hand a business organization can identify its failure by seeing the decrease of economic condition. Economics for business is related with the issues and problems regarding the economic strategies. The structure of an organizationRead MoreEcnomic Growth1252 Words   |  6 Pages------------------------------------------------- Economic Development ------------------------------------------------- Definition of Economic Development Economic development is a process of economic transition involving structural transformation of an economy through industrialization, raising gross national product and per capital income. According to Lewis, Economic development means increase in output per head. According to Micheal Todaro, Economic development must be conceived of as a multi-dimensionalRead MoreEssay on ECON 2155 932 Words   |  4 PagesConsists of four parts Part 1: Expenditures Approach to Calculating GDP (weight 25% of the assignment grade) Complete the following exercise Visit the Bureau of Economic Analysis Web site at   www.bea.gov   In U.S. Economic Accounts under   National click on Gross Domestic Product (GDP), then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables, click â€Å"Begin using the data†, and use Section 1 - Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and realRead MoreGm545 Business Economics-Project Paper 21569 Words   |  7 PagesQuestion 14 National income and output are used in economic studies to estimate the value of goods and services produced in an economy a snapshot of a country’s economic activity. A system of national account is employed to account for and record economic changes. National income is calculated using a variety of different methods. Some of the more popular methods include GDP (Gross Domestic Product), GNP (Gross National Product), NNP (Net National Product), NNI (Net National Income) PI (Personal